Mixue shares fall for 2 consecutive days after first-half profit drops 14.7%
Earnings
Mixue Group, a major Chinese bubble tea and beverage provider, saw its shares fall for a second consecutive day in Hong Kong trading today (Aug 28), dropping over 7% after yesterday's 8.37% decline, following the release of sluggish first-half results. The company said net profit for the first six months of the year, which ended in June, stood at 2.32 billion yuan ($345.2 million), down 14.7% year-on-year, while revenue increased 2.3% to 15.22 billion yuan. The profit decline was attributed to rising costs and expenses, with cost of sales expanding faster than revenue after the company increased investment to enhance product quality. Selling and distribution expenses rose 22.9% due to higher marketing and personnel costs, while administrative expenses increased 39.4% due to higher employee costs. The company proposed a special dividend of 2.65 yuan per share, subject to shareholder approval. Reports indicate that while the Chinese market remains its core base, Mixue has been expanding overseas, with 4,378 stores outside mainland China as of the end of June, and is expanding into Central Asia and the Americas. For its next phase, Mixue plans to strengthen its presence in Southeast Asia while continuing expansion in Central Asia and the Americas, alongside developing more localized supply chains in each country to support overseas growth. Additionally, Mixue plans to develop its mascot brand "Snow King" into a global cultural brand through animated series, comics, films, merchandise, and even theme park ventures.
